Exercise 12-4 Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended December 31 $2,428,000 1,189,720 1,238,280 Sales Cost of goods sold Gross profit Operating expenses Salaries expense Depreciation expense $332,636 58,272 65,556 7,284 Rent expense Amortization expenses-Patents Utilities expense 26,708 490,456 747,824 Gain on sale of equipment 9,712 $ 757,536 Net income $10,100 increase 11,650 increase Accounts payable Salaries payable Accounts receivable $11,800 decrease 4,400 decrease Inventory Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities Net income 1,238,280 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities 1,238,280